Cassie Mccullough

Review of Stripe

Beware of Delayed Payouts from Stripe. Our small b...

Beware of Delayed Payouts from Stripe. Our small business started using Stripe April of this year. Our small boutique Med spa is low risk with zero chargebacks and to date, zero refunds.
On 5/10/19, one month after using stripe We received this email notification below:

We're reaching out let you know that we've had to increase the delay in paying out funds to your bank account to a 5-business-day delay. This is an unfortunate but necessary part of mitigating the risks inherent in providing credit services to our users, and we apologize for the sudden change.

That said, once we've been able to observe a sufficient amount of business activity from your account, we'll be able to speed up your payouts. Feel free to reach out after your business has accepted normal payment volume for a month, and we'll do our best to get your account back on a faster payout schedule.

After a few back and forth emails with customer service with Stripe we received this email on 5/21/19

We're sincerely sorry that we've had to temporarily extend your transfer schedule to five days. Unfortunately, we also have a responsibility to thoroughly review each account that signs up while simultaneously protecting ourselves from financial risk. Sometimes, as in this case, that means we have to slow down transfers for a short period while we complete those reviews. We know how important it is to be able to accept transactions and payouts quickly in order for a business to continue running smoothly, and we'll work to make sure this review is completed in a timely manner.

We should be able to get your transfers back on schedule at the end of the month, so long as you continue to process a normal volume for your business that we can review in an ongoing manner.

If your transfer schedule remains set at five days at the end of this month-long period, please don't hesitate to get in touch to let us know.

We decided continue with stripe through the end of the month to allow them to observe our business payouts. As of today 6/18/19 it is still 5 days and with the weekend it s more like 7-8 days for payouts. We reached out to customer service to have this resolved and this is what we received:

On review of your account, I'm afraid we won't be able to put your account on a faster payout schedule at the moment, we would require that you write in 90 days after the initial payout plan was implemented.

This would be May 10, 90 days from this would bring you to around the 10 August, 2019, we would need to wait until this date so as we can observe your processing for the three months before we can reduce your payout schedule.

Again, our industry is low risk with zero chargebacks and zero refunds to date. They have absolutely no reason to continue to delay funds into our account. They have now gone from a ten day period to needing a 90 day period to observe. Stripe set the expectation that it would be resolved by the end of May which led us to the decision to continue processing through them. With continued funds tied up with them its wreaked havoc on our business. Cash flow is the lifeblood to small businesses and our business is no different. If you have the ability and don t mind waiting 7-10 days for deposits then stripe might be a good option for your small business otherwise consider going with another merchant processor.